Mohammed Akar is the general manager of The Wood Factory, a leading manufacturer of high-end furniture, doors, and home and office interiors, based in Nigeria’s capital, Abuja.
In his 16 years of working at The Wood Factory, Mr. Akar’s biggest challenge has been accessing reliable, cost-effective power.
This collaborative business model results in a win-win-win scenario. The Wood Factory receives cheaper and more reliable electricity, Daystar Power leverages the existing distribution network to lower the project’s cost, and AEDC’s revenue increases by bringing a customer back on the grid and selling electricity to them. Other key features of this business model include:
Long-term contract with blended tariffs: The tripartite contract between the customer, developer, and DisCo allows for contract periods of 10 to 20 years, ensuring an affordable tariff and reducing the impact of volatile fossil fuel costs.Many C&I companies have the opportunity to save on their energy expenditure, enhance operational efficiency, and improve reliability through this business model. However, some customers perceive limitations to this solution.
Over the next six months, Daystar Power will procure the battery system, work with AEDC to carry out upgrades to the distribution network, and construct the hybrid system for The Wood Factory. In addition, it will continue to work on the prepared projects in the pipeline to help these companies reduce costs by a combined ₦750 million and contribute to their sustainability goals by reducing emissions by 20,000 MTCO2 equivalent, providing more evidence of the model’s viability.
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